Australian director Morgan O'Neill has signed on for 'Banjo and Matilda', which will be filmed in Winton and surrounds in 2014.

Mr O'Neill's most recent film, 'Drift', about the early days of the surfing scene in Australia, stars Sam Worthington and Xavier Samuel.

He also directed actor John Cusack in the film 'The Factory'.

'Banjo and Matilda' producer Bill Leimbach says Mr O'Neill is one of the most in-demand Australians on the film scene at the moment.

"He's a hot new thing in Hollywood, he's in that 'Aussie mafia' in Hollywood now," he says.

"He's right up there, he's in touch with a lot of actors so it's going to be easier for us to bring on board the cast we want."

Mr Leimbach says Mr O'Neill has a background in English literature and a love of the story of Banjo Paterson.

Mr Leimbach says they're still looking for an actor to play the main role, but he has some names in mind.

"There's a lot of talent of course, but who has box office attraction?" Mr Leimbach says.

"Maybe Liam Hemsworth, would we be lucky enough to get him?

"He's the most popular guy in Australia at the moment... the most popular Australian.

"But I don't think we'd ever be able to get him and get him out to Winton for two months, that's pretty hard.

"It's going to be a demanding shoot."

Mr Leimbach says they plan to have the final script ready in mid-July.

He says there'll be some "historical licence" taken with the facts.

"While still revering the heritage and not destroying the reputation of Banjo or any of the people around then, we had to take some liberties and make it more action driven and more compelling," he says.

"There's more at stake... (Banjo's) life is at stake when he goes out there now.

"It's not far from the truth, we haven't destroyed anything, we've just enhanced it."